GIC-backed JV to buy Sheraton Grande Tokyo Bay Hotel for US$909.1m

SINGAPORE'S sovereign wealth fund GIC will enter into a joint venture with Invincible Investment Corporation, a public hotel and residential J-Reit, to acquire Sheraton Grande Tokyo Bay Hotel for about 100 billion yen (US$909.1 million).

GIC on Thursday said it would own the majority stake of 51 per cent.

Built in 1988, Sheraton Grande Tokyo Bay Hotel is a 1,016-room hotel which includes a 175-room Annex Tower opened in December 2016, located adjacent to Tokyo Disney Resort (TDR) and its largest "Official Hotel", out of six such hotels. Since its opening, the hotel has remained popular among its domestic and inbound customer base.

Since its establishment in 1984, TDR has had a proven track record of growth, attracting over 30 million park visitors annually in recent years.

Oriental Land Co, the operator of TDR, announced plans to add several new attractions at Tokyo Disneyland and Tokyo DisneySea, including a large-scale investment project of 75 billion yen (US$682 million) to open new attractions scheduled in the spring of 2020 in Tokyo Disneyland.

Said Lee Kok Sun, chief investment officer of GIC Real Estate: "Sheraton Grande Tokyo Bay Hotel, with its close proximity to Tokyo Disney Resort, has shown strong and resilient cash-flows. As a long-term value investor, we are confident in the continued growth and demand in Japan. In partnership with Invincible Investment Corporation, we will seek to enhance the Sheraton Grande Tokyo Bay Hotel and support it in its next phase of growth. We have been investing in Japan for more than 20 years and are continually on the lookout for quality assets with stable cash-flow potential."